On September 2, Goldman Sachs issued a report revealing that BYD Company Limited's (01211.HK) revenue and gross profit margin for the second quarter of this year fell short of the bank's projections, with discrepancies of 6% and 1.8 percentage points, respectively. Goldman Sachs' analysis pinpoints several factors contributing to BYD's decline in per-vehicle profit in China during the second quarter, including escalating material costs, 618 promotional campaigns, and incentives provided to dealers. However, amidst the government's anti-competitive measures and stabilizing prices, Goldman Sachs anticipates a rebound in BYD's domestic per-vehicle profit to RMB 4,400 in the third quarter, further increasing to RMB 5,000 in the fourth quarter. Given the decline in domestic market share, Goldman Sachs has adjusted its sales forecast for BYD, reducing it from 5.5 million to 6.8 million units for the period 2025-2027 to a range of 5 million to 6 million units. Additionally, the bank has lowered its net profit forecast for the same period by 12%-21% and revised the target price down to HK$130.